PONS crypto surges 25% – Can bulls push the price past $0.35?

Pons [PONS] jumped 25.12% over the past 24 hours, at press time, pushing its price toward $0.30 as renewed buying activity lifted market participation considerably.

Additionally, the token’s trading activity also expanded, with the spot volume surging 95.43% to $48.74 million over the same period. This increase in activity highlighted renewed market interest as investors returned after weeks of declining prices.

Beyond Spot markets, derivatives’ market participants also increased their exposure as the recovery gained momentum.

Derivatives traders pile in as interest grows

The derivatives activity also surged considerably amid the rally, with trading volume climbing 187.88% to $187.05 million as of writing. Furthermore, PON’s Open Interest (OI) also increased 29.98% to $121.55 million, suggesting that investors increased their outstanding Futures positions.

These simultaneous appreciations in price and OI implied fresh positions entered the market rather than traders simply closing existing contracts. The derivatives volume, in fact, exceeded the Spot trading volume, reflecting the significant role of Futures activity in the rally.

The expanding leveraged exposure, however, also introduced additional risks, especially in case PONS fails to sustain its recovery. To be specific, a sharp price reversal could trigger position closures, which could in turn amplify short-term volatility.

Binance’s top traders lean heavily toward longs

Binance’s top participants maintained a predominantly bullish positioning bias as PONS recovered above $0.30. Particularly, the Long/Short accounts data showed 66.05% of top trader accounts held long positions, with the short accounts representing 33.95%. 

Consequently, the imbalance left the Long/Short Ratio at 1.95, showing that approximately twice as many top trader accounts favored further gains over declines. Notably, the ratio had previously climbed above 2.0 before retreating slightly, suggesting some moderation in bullish positioning.

However, despite the minor pullback, long accounts retained a clear majority, reflecting expectations of further recovery. With the market participants favoring additional gains, the daily chart offered clues about whether PONS could maintain its recovery.

PONS eyes $0.35 as bullish signals emerge

Pons rebounded from the $0.22 support level, recovering above $0.30 after several weeks of continued selling.

The price recovery brought the $0.35 area of action into spotlight as the next significant resistance, with $0.50 remaining as a higher upside target. Importantly, the Parabolic SAR indicator shifted below the price to $0.21 at the time of writing, highlighting improving bullish conditions.

Furthermore, the Relative Strength Index (RSI) indicator also climbed to 45.87, surpassing its moving average of 36.17. Notably, its recovery from near-oversold territory implied strengthening buying pressure, as the indicator approached the neutral 50 threshold.

Overall, PONS’ recovery gained support from rising trading activity, expanding OI, and bullish positioning among Binance’s top traders. 

The improving technical indicators strengthened prospects for further gains, and a sustained break above $0.35 would provide stronger confirmation of recovery towards $0.50.

Final Summary

• PONS surged 25% as rising spot volume and futures activity fueled its recovery.

• PONS could extend its recovery toward $0.35 as improving technical indicators support further gains.